Ares Commercial Q4 net income misses analyst expectations

Ares Commercial Real Estate

10/02/2026 11:07

Overview

Specialty finance firm's Q4 net income missed analyst expectations

Pretax profit for Q4 beat analyst estimates

Company closed $150 mln in new loan commitments post-year end

Outlook

Company aims to reposition portfolio for earnings growth in 2026

Company continues to optimize financing structure for future growth

Result Drivers

STRATEGIC GOALS - Co focused on addressing risk-rated loans and reducing office and REO properties, which allowed a return to investing, per CEO Bryan Donohoe

LOAN REPAYMENTS - Co collected $572 mln in loan repayments, enhancing balance sheet flexibility for asset resolutions and new investments, per CFO Jeff Gonzales

FINANCING STRUCTURE - Co optimized financing by increasing availability and reducing borrowing costs to support growth objectives

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue from Real Estate Owned
$5.56 mln
Q4 EPS
-$0.07
Q4 Net Income
Miss
-$3.87 mln
$341,670 (6 Analysts)
Q4 Pretax Profit
Beat
-$3.86 mln
-$5.26 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy."

Wall Street's median 12-month price target for Ares Commercial Real Estate Corp is $4.75, about 7% below its February 9 closing price of $5.11

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw1m6zzba

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)